Magic Software (MGIC) Misses Q3 Earnings Estimates

Core Viewpoint - Magic Software (MGIC) reported quarterly earnings of $0.23 per share, missing the Zacks Consensus Estimate of $0.24 per share, but showing an increase from $0.21 per share a year ago, indicating a -4.17% earnings surprise [1] - The company posted revenues of $142.97 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 4.13% and up from $129.48 million year-over-year [2] Financial Performance - Over the last four quarters, Magic Software has surpassed consensus EPS estimates three times [2] - The company has topped consensus revenue estimates four times over the last four quarters [2] - The current consensus EPS estimate for the upcoming quarter is $0.25 on revenues of $140.6 million, and for the current fiscal year, it is $0.95 on revenues of $544.8 million [7] Stock Performance - Magic Software shares have increased approximately 17.9% since the beginning of the year, compared to the S&P 500's gain of 23.1% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Outlook - The Computer - Software industry is currently in the top 16% of over 250 Zacks industries, suggesting a favorable outlook [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact stock performance [5]